Traditional Vs Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

No income limits to open

No minimum contribution in any year allowing flexibility

Contributions are tax deductible on state and federal income tax*

Earnings are tax deferred until withdrawal (when usually in lower tax bracket)

Withdrawals can begin at age 59½

Early withdrawals subject to penalty**

Mandatory withdrawals at age 70½

Members under age 70½ may contribute $5,500 maximum per year

Roth IRA

No minimum amount to set up

Income limits to be eligible to open Roth IRA***

Contributions are NOT tax deductible

Earnings are 100% tax free at withdrawal*

Principal contributions can be withdrawn without penalty*

Withdrawals on interest can begin at age 59½

Early withdrawals on interest subject to penalty**

No mandatory distribution age

No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***Consult a tax advisor.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.